|Foreign investors are targetting realty more than ever Photo: Le Toan|
This expected expansion is a result of stable economic growth and increased demand from both domestic and international buyers following the government’s decision to ease regulations allowing foreigners to own properties in Vietnam.
Developers from Japan, South Korea, and Singapore are the most aggressive. Singapore’s leading real estate developer, CapitaLand, is preparing necessary procedures to launch its latest project within this year, a residential tower in the heart of Ho Chi Minh City.
Due to be completed in the first quarter of 2018, the Somerset Dimension Ho Chi Minh City will be the first for-sale residential development in Vietnam to offer property management and concierge services by Ascott, the world’s largest international serviced residence owner-operator, an arm of CapitaLand.
Four projects developed by a newly-formed joint venture between Indochina Capital and Japan’s Kajima Corporation will also commence soon. The joint venture inked a contract last year to build a dozen projects in the next decade, ranging from residential to hospitality, in Vietnam’s major cities.
The first four projects have total investment capital of $100 million, and will be located in Hanoi, Ho Chi Minh City, and Danang.
Besides, in Ho Chi Minh City’s Thu Thiem New Urban Area, Gaw Capital Partners’ $1.2 billion Empire City has just completed its model house, which is open for public viewing. The development will have a deluxe shopping mall, a five-star hotel, an office building, modern condominiums, and an 86-storey multifunctional tower, which will be the tallest building in Vietnam once completed. Preparations are being made to launch initial sales efforts to prospective buyers.
Also in Thu Thiem New Urban Area, the South Korean Lotte Group teamed up with three Japanese enterprises, Mitsubishi Corporation, Mitsubishi Estate, and Toshiba Corporation, and they are waiting for official approval from local authorities to start their $2.2 billion eco-smart city project.
Representatives of Lotte confirmed that the initial planning is done, and the developer is ready to start the project this year. Covering an area of 16.71 hectares, the complex plans to feature an international shopping-financial-banking centre, hotels, serviced apartments, offices, multifunctional condos, and a 50-storey building.
The list of upcoming foreign property projects also include Japan’s Meade Group actively preparing to launch its $30 million high-end project called Wateria Suites in Ho Chi Minh City’s District 2.
Meanwhile, another team of Japanese developers, including Daiwa House Industry, Nomura Real Estate Development, and Sumitomo Forestry, is launching a $220 million condominium project called Midtown in Ho Chi Minh City’s District 7. With construction starting in early 2017 and a finish date in 2019, this project will add around 1,100 units in five buildings to the market.
The real estate market has also been enhanced by a range of merger-and-acquisition deals and new investment funds.
A group of Japanese corporations are exploring the possibility of injecting up to $2 billion in large, mixed-use complexes in major Vietnamese cities. The corporations involved include Mitsubishi, Sumitomo, Taisei, Nomura, Haseko, Sanyo Homes, Daiwa House, Aeon, and Toshin.